Duolingo Stock Earnings Reports

Q1 execution focused on “teaching better” and measured user growth. Daily active users (DAUs) rose 21% year-over-year and management reiterated a ~20% DAU growth target for 2026 with continued regional strength in Asia. Product highlights: expanded speaking features (spoken tokens, speaking adventures, flashcards), improvements to video call (more words spoken per user), and completion of advanced course content to B2 across the nine most-learned languages. Content velocity increased dramatically (20.5k course units published in Q1), driven by AI, which management says is improving both content scale and quality. Financials: double-digit bookings and revenue growth in Q1, expanded gross margin, and adjusted EBITDA of $83M (~29% of revenue). For full-year 2026 management reiterated their target ranges and provided point estimates: roughly 10.5% bookings growth, ~16.1% revenue growth, and a ~25.7% adjusted EBITDA margin. They expect Q2 bookings to be softer (~6% growth) due to a tough prior-year comp, gross margin to be ~71% in Q2 falling toward ~69% by year-end as AI usage expands, and Q2 adjusted EBITDA around 24% before improving to the high-20s in Q4. Balance sheet: >$1B cash, no debt, expected >$350M free cash flow for 2026 and an active share buyback program (repurchases to date ~1% of fully diluted shares). Strategy and go-to-market: deliberate investment year to prioritize long-term durability—experiments underway on monetization (longer free trials, tier experiments like video call in Super), stepping up performance marketing (notably in Asia/China), and careful content quality controls despite rapid AI-driven scale.